BEFORE THE PUBLIC SERVICE COMMISSION

OF THE STATE OF DELAWARE

ORDER NO. 7946

This 19th day of April, 2011, the Commission determines and

Orders the following:

1. Since 1999, the Commission has included within its Rules

for Certification and Regulation of Electric Suppliers (26 Del. Admin.

C. §3001)(“the Regulations”)) specific provisions governing “net

energy metering” by retail electric consumers. 26 Del. Admin. C.

§3001-8.0 (“net metering rules”).1 These net metering rules have

implemented statutory enactments that, over the years, have afforded

retail electric customers expanding opportunities to utilize limited

capacity generation to “net meter” the customer’s electric supply

consumption. See 26 Del. C. §1014(d)-(k) (current statutory “net

metering” regime).

2. The statutory net metering regime was revised in July,

2010. See 77 Del. Laws ch. 453 §§2-11 (July 28, 2010), amending 26

1The Commission has over the years titled these Regulations as the “Rules for

Certification and Regulation of Electric Suppliers.” In contrast, in the

Administrative Code, the Register of Regulations uses the title “Regulations Governing

Service Supplied by Electrical Corporations.”

IN THE MATTER OF THE ADOPTION OF

RULES AND REGULATIONS TO IMPLEMENT

THE PROVISIONS OF 26 DEL. C. CH. 10

RELATING TO THE CREATION OF A

COMPETITIVE MARKET FOR RETAIL

ELECTRIC SUPPLY SERVICE (OPENED

APRIL 27, 1999; RE-OPENED JANUARY

7, 2003; RE-OPENED SEPTEMBER 22,

2009; RE-OPENED SEPTEMBER 7, 2010)

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PSC REGULATION DOCKET NO. 49

PSC Regulation Docket No. 49, Order No. 7946 Cont’d

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Del. C. §1014(d) & (e), and adding §1014(i)-(k). In October, 2010, the

Commission gave notice of proposed changes to the net metering rules

in its Regulations to implement these 2010 legislative amendments. 14

DE Reg. 282 (Oct. 1, 2010); PSC Order No. 7832 (Sept. 7, 2010). The

thrust of the 2010 statutory amendments, and the Commission’s

concurrent proposed changes to its net metering rules, was: (1) to

allow a retail electric customer to aggregate multiple individually

metered accounts beyond the account/meter serving the generation

facility for purposes of allocating net metering credits and (2) to

allow several retail customers, through aggregation of accounts or by

investment, to obtain net metering benefits via community-owned

generating facilities.

3. Staff now reports that it would be appropriate to further

revise the earlier proposed rule changes, based upon the responses

engendered by the earlier October, 2010 notice. Staff has submitted

further revised proposed net metering provisions which, according to

Staff, differ, in some aspects, from the earlier proposed changes.

For example, these further revisions:

(a) more carefully delineate the value of carried-over monthly

excess generation credits in the context of both aggregated

meters and community-owned generation facilities dependent upon

the customer accounts being served by the same or a differing

distribution feeder (proposed further §§ 8.3 & 8.4(i)(1),

(ii)(1));

PSC Regulation Docket No. 49, Order No. 7946 Cont’d

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(b) set forth an alternative value to be used in the purchase of

net excess generation of a community-owned generation facility

(further revised § 8.4.2); and

(c) allow Delmarva Power & Light Company to recover from stand-

alone community-owned generation facilities a retail equivalent

customer charge and other applicable non-volumetric supply,

transmission, and delivery costs (proposed further revision §

8.2.4 & .5).

4. In light of Staff’s report, and in accord with 29 Del. C.

§10118(c), the Commission now adopts a Further Notice of Proposed

Rulemaking and proposes further revisions to the net metering rules in

its Regulations. These further revisions are proposed, in part, due

to the responses garnished from the earlier October, 2010 notice of

rulemaking and are, in some part, substantively different from the

earlier proposed changes to the net metering rules.

5. This Further Notice, and the further revised proposed net

metering provisions, will supersede the Notice and proposed revisions

set forth at 14 DE Reg. 282 (Oct. 1, 2010) and in Order No. 7832.

However, because in many instances the further revisions now being

noticed mirror changes proposed under the earlier notice, the comments

submitted, and the record developed in earlier proceedings, in

response to the earlier notice will be incorporated into the record of

this Further Notice.

NOW THEREFORE, IT IS ORDERED BY THE AFFIRMATIVE VOTE OF

NOT FEWER THAN THREE COMMISSIONERS:

1. That to further implement the provisions of 26 Del. C.

1014(d)-(k), as amended by 77 Del Laws ch. 453 (2010), and to make

PSC Regulation Docket No. 49, Order No. 7946 Cont’d

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additional “administrative” changes, the Commission issues a Further

Notice of Proposed Rulemaking and further revised proposed revisions

to its Rules For Certification And Regulation Of Electric Suppliers,

26 Admin. C. §3001 (“the Regulations”). The further proposed

revisions now noticed are set forth, via interlineations, in Exhibit

“A” as appended to this Order. The Commission has authority to

propose such rules pursuant to 26 Del. C. §§209 & 1014(d), (e), (k).

2. That this Further Notice of Proposed Rulemaking, and

further proposed revisions as set forth in Exhibit “A” of this Order,

supersede the Notice and proposed revisions previously published at 14

DE Reg. 282 (Oct. 1, 2010) and in PSC Order No. 7832 (Sept. 7, 2010).

Those earlier proposed revisions (unless incorporated into Exhibit

“A”) are hereby withdrawn in favor of the further proposed revisions

now being noticed. However, the comments received in response to the

earlier proposed revisions, and the record developed in response to

the notice directed by PSC Order No. 7832), shall be incorporated into

the record of this Further Notice.

3. That, pursuant to 29 Del. C. §§10113 and 10115, the

Secretary shall transmit to the Registrar of Regulations for

publication in the May, 2011 issue of the Delaware Register of

Regulations a copy of this Order; a copy of the Regulations,

delineating the proposed further revisions to the net metering

provisions and several other provisions; and a copy of the Further

Notice attached hereto as Exhibit “B”. In addition, the Secretary

shall cause the Further Notice attached as Exhibit “B” to be published

in The News Journal and the Delaware State News newspapers on or

PSC Regulation Docket No. 49, Order No. 7946 Cont’d

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before May 10, 2011. The Secretary shall include proof of such

publication in the docket file before the public hearing in this

matter. Further, the Secretary shall serve (by regular mail or by

electronic e-mail) a copy of such Further Notice on: (a) the Division

of the Public Advocate; (b) the State Energy Office; (c) Delmarva

Power & Light Company; (d) all certificated electric suppliers; (d)

all persons and entities, who in response to the Notice of Rulemaking

adopted by PSC Order No. 7832 (Sept. 7, 2010) either filed comments or

participated in any public hearing or workshop; and (e) each person or

entity who has made a timely request for advance notice of the

Commission’s regulation-making proceedings.

4. That, pursuant to 29 Del. C. §§10115(a) and 10116, persons

or entities may file written comments, suggestions, compilations of

data, briefs, or other written materials, in response to this Further

notice or before June 1, 2011. Pursuant to 29 Del. C. §10117, the

Commission will conduct, at its offices in Dover, a public hearing on

the proposed revisions to the Regulations on June 7, 2011, beginning

at 1 pm.

5. That, pursuant to 26 Del. C. §§114 and 1012(c)(2), all

electric suppliers and electric public utilities are hereby notified

that they will be charged the costs incurred in connection with this

proceeding under the provisions of 26 Del. C. §114(b)(1).

6. The Commission reserves the jurisdiction and authority to

enter such further Orders in this matter as may be deemed necessary or

proper.

PSC Regulation Docket No. 49, Order No. 7946 Cont’d

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BY ORDER OF THE COMMISSION:

/s/ Arnetta McRae

Chair

/s/ Joann T. Conaway

Commissioner

/s/ Jaymes B. Lester

Commissioner

/s/ Dallas Winslow

Commissioner

/s/ Jeffrey J. Clark

Commissioner

ATTEST:

/s/ Alisa Carrow Bentley______

Secretary

EXHIBIT A

DELAWARE PUBLIC SERVICE COMMISSION

RULES FOR

CERTIFICATION AND REGULATION

OF ELECTRIC SUPPLIERS

EFFECTIVE: _________, 20092011

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1.0 Definitions

“Affiliated Interest”-” means:

1. Any person or entity who owns directly, indirectly or through a chain of

successive ownership, 10% or more of the voting securities of the Applicant;

2. Any person or entity, 10% or more of whose voting securities are owned,

directly or indirectly, by an affiliated interest as defined in 1 above; or

3. Any person or entity, 10% or more of whose voting securities are owned,

directly or indirectly, by the Applicant.

“Aggregator” means any person or entity who contracts with an electric distribution

company, electric supplier or PJM Interconnection (or its successor) to provide energy services,

which facilitate battery storage systems for Grid-Integrated Electric Vehicles and related

technologies.

“Ancillary Services” means those services that are necessary to support the transmission

of capacity and energy from resources to loads while maintaining reliable operation of the

system.

"Annualized Billing Period" -means a period of 12 consecutive monthly billing periods.

A Customer's first Annualized Billing Period begins on the first day of the first full monthly

billing period after which the Customer-Generator Facility is interconnected with the EDC and is

generating electricity. A customer may elect to change the end of the Annualized Billing Period

one time in order to better utilize excess generation.

“Applicant” means an entity or person seeking to obtain an Electric Supplier Certificate.

“Broker” means an entity or person that acts as an agent or intermediary in the sale or

purchase of, but that does not take title to, electricity for sale to Retail Electric Customers.

“Commission” means the Delaware Public Service Commission.

“Community-owned energy generating facility” or “Community Energy Facility” means

a renewable energy generating facility that has Subscribers who share the energy production of

the Community Energy Facility, which may be located either as a stand-alone facility or behind

the meter of a Subscriber. The Community-owned energy generating facility shall be

interconnected to the distribution system and operated in parallel with an electric distribution

company’s transmission and distribution facilities. The Community Energy Facility shall:

Satisfy all applicable requirements of Section 8.0 Net Metering of this Rule;

Meet all applicable safety and performance standards established by the National

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Electrical Code, the Institute of Electrical and Electronic Engineers, and

Underwriters Laboratories to ensure that net metering customers meet applicable

safety and performance standards; and

Comply with the Electric Supplier's interconnection tariffs and operating

guidelines.

“Cramming” means the practice of charging Customers for services that they have not

ordered or have been sold in a deceptive manner such that the customer is not reasonably aware

of the nature or price of the service for which he or she is being charged.

“Customer” or “Retail Electric Customer” -means a purchaser of electricity for ultimate

consumption and not for resale in Delaware, including the owner/operator of any building or

facility, but not the occupants thereof, who purchases and supplies electricity to the occupants of

such building or facility.

“Customer-Generator Facility” means equipment used by a Customer to generate,

manage, and monitor electricity. A Customer-Generator Facility, which typically includes an

electric generator and/or an equipment package, shall:

Satisfy all of the applicable requirements of Section 8.2 General Provisions0 Net

Metering of this Rule;

Meet all applicable safety and performance standards established by the National

Electrical Code, the Institute of Electrical and Electronic Engineers, and

Underwriters Laboratories to ensure that net metering customers meet applicable

safety and performance standards; and

Comply with the Electric Supplier's interconnection tariffs and operating

guidelines.

“Delaware Electric Cooperative, Inc.” or “Cooperative” or “DEC” or its successor(s).

“Delmarva Power & Light Company” or “Delmarva” or “DP&L” or its successor(s).

“Distribution Services” means those services, including metering, relating to the delivery

of electricity to a Retail Electric Customer through Distribution Facilities.

“Distribution Facilities” means electric facilities located in Delaware that are owned by a

public utility that operate at voltages of 34,500 volts or below and that are used to deliver

electricity to Retail Electric Customers, up through and including the point of physical

connection with electric facilities owned by the Retail Electric Customer.

“Electric Distribution Company” or “EDC” means a public utility owning and/or

operating Transmission and/or Distribution Facilities in Delaware.

“Electric Supplier” means an entity or person certified by the Commission, including

municipal corporations which choose to provide electricity outside their municipal limits (except

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to the extent provided prior to February 1, 1999), Broker, Marketer or other entity (including

public utilities and their affiliates, e.g., Delmarva), that sells electricity to Retail Electric

Customers, utilizing the Transmission and Distribution Facilities of an Electric Distribution

Company.

“Electric Supplier Certificate” or “ESC” means a certificate granted by the Commission

to Electric Suppliers that have fulfilled the Commission’s certification requirements.

“Electric Supply Service” means the provision of electricity or electric generation

service.

“Eligible Energy Resources” means the following energy sources located within the PJM

region or imported into the PJM region and tracked through the PJM Market Settlement System:

Solar energy technologies that employ solar radiation to produce electricity;

Electricity derived from wind energy;

Electricity derived from ocean energy including wave or tidal action, currents, or

thermal differences;

Geothermal energy technologies that generate electricity with a steam turbine,

driven by hot water or steam extracted from geothermal reservoirs in the earth’s crust;

Electricity generated by a fuel cell powered by Renewable Fuels;

Electricity generated by the combustion of gas from the anaerobic digestion of

organic material;

Electricity generated by a hydroelectric facility that has a maximum design

capacity of 30 megawatts or less from all generating units combined that comply with

environmental standards promulgated by DNREC in its “Environmental Standards for Eligible

Energy Resources” (10 DE Reg. 351 Aug. 1, 2006);

Electricity generated from the combustion of biomass that has been cultivated and

harvested in a sustainable manner as determined by DNREC in its “Environmental Standards for

Eligible Energy Resources” (10 DE Reg. 351 Aug. 1, 2006) , and is not combusted to produce

energy in a waste to energy facility or in an incinerator;

Electricity generated by the combustion of methane gas captured from a landfill

gas recovery system; provided, however, that:

Increased production of landfill gas from production facilities in operation

prior to January 1, 2004 demonstrates a net reduction in total air emissions compared to flaring

and leakage;

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Increased utilization of landfill gas at electric generating facilities in

operation prior to January 1, 2004 (i) is used to offset the consumption of coal, oil, or natural gas

at those facilities, (ii) does not result in a reduction in the percentage of landfill gas in the

facility’s average annual fuel mix when calculated using fuel mix measurements for 12 out of

any continuous 15 month period during which the electricity is generated, and (iii) causes no net

increase in air emissions from the facility; and

Facilities installed on or after January 1, 2004 meet or exceed 2004

Federal and State air emission standards, or the Federal and State air emission standards in place

on the day the facilities are first put into operation, whichever is higher.

“FERC” means the Federal Energy Regulatory Commission.

“Fuel Cell” means an electric generating facility that: (a) includes integrated power plant

systems containing a stack, tubular array, or other functionally similar configuration used to

electrochemically convert fuel to electric energy, and (b) may include an inverter and fuel

processing system or other plant equipment to support the plant’s operation or its energy

conversion, including heat recovery equipment.

“GATS” means the Generation Attribute Tracking System developed by PJM-

Environmental Information Services, Inc. (PJM-EIS).

“Generation Attribute” means a non-price characteristic of the electrical energy output of

a Generation Unit including, but not limited to, the Unit’s fuel type, geographic location,

emissions, vintage, and RPS eligibility.

“Generation Unit” means a facility that converts a fuel or an energy resource into electric

energy.

“Grid-Integrated Electric Vehicle” means a battery-run motor vehicle that has the ability

for two-way power flow between the vehicle and the electric grid and the communications

hardware and software that allow for the external control of battery charging and discharging by

an electric distribution company, electric supplier, PJM Interconnection, or an aggregator.”

“Host Customer” means the customer account directly connected to a Customer-

Generator Facility or Community Energy Facility, or, for a stand-alone Community Energy

Facility, the customer account as designated by the Subscribers who share the energy production

of the Community Energy Facility.

“Marketer” means an entity or person that purchases and takes title to electricity for sale

to Retail Electric customers.

"Net Metering" (or “Net Energy Metering”) means a service to a Customer whereby

electric energy generated by the Customer, through a Customer-Generator Facility and delivered

to the local distribution facilities of an Electric Supplier, may be used to offset electric energy

provided by the Electric Supplier to the Customer.

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“PJM Interconnection, LLC” or “PJM” means the Regional Transmission Organization

(“RTO”) that is responsible for wholesale energy markets and the interstate transmission of

energy throughout a multi-state area, or its successor organization. “Residential Customer”

means a Retail Electric Customer eligible to take Residential services under the Delmarva Power

or the Delaware Electric Cooperative’s tariff, currently on file with the Commission.

“Renewable Energy Credit” or “REC” means a tradable instrument comprised of all the

Generation Attributes equal to 1 megawatt-hour of electricity derived from Eligible Energy

Resources and that is used to track and verify compliance with the provisions of Delaware Public

Service Commission Regulation Docket No. 56. A REC does not include emission reduction

credits and/or allowances encumbered or used by a Generation Unit for compliance with local,

state., or federal operating and/or air quality permits associated with the 1 megawatt-hour of

electricity.

“Renewable Energy Portfolio Standard” or “RPS” refers to the Rules and Procedures to

Implement the Renewable Energy Portfolio Standard, Delaware Public Service Commission

Regulation Docket No. 56.

“Slamming” means the unauthorized enrollment of a customer without the customer’s

permission or the unauthorized transfer of a customer to another Electric Supplier.

“Small Commercial Customer” means a Retail Electric Customer taking service under

DP&L’s tariff, currently on file with the Commission, Service Classification “Small General

Service-Non Demand Rate” or the Cooperative’s tariff, currently on file with the Commission,

Service Classification “General Service.” However, for the purposes of these Rules, any Small

Commercial Customer who has joined with an affiliated non-Small Commercial Customer or a

non-Residential Customer for the purpose of contracting for Electric Supply Service shall be

exempt from the definition of a Small Commercial Customer.

“Standard Offer Service” or “SOS” means the provision of Electric Supply Service after

the Transition Period by a Standard Offer Service Supplier to Customers who do not otherwise

receive Electric Supply Service from an Electric Supplier.

“Standard Offer Service Supplier” or “SOSS” means an Electric Supplier that provides

Standard Offer Service to Customers within an Electric Distribution Company’s service territory

after the Transition Period.

“State” means The State of Delaware.

“Subscriber(s)” means those persons who are otherwise Retail Electric Customers of an

electric supplier that are entitled to share in the energy production of a Community Energy

Facility.

“Telemarketing” means any unsolicited telephone calls initiated by, or on behalf of, an

Electric Supplier to a Customer in order to market Electric Supply Service.

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“Transition Period” means the period of time described in 26 Del. C. § 1004, which:

begins October 1, 1999 and ends May 1, 2006 for Delmarva’s customers; and begins April 1,

2000 and ends March 31, 2005 for all Cooperative customers.

“Transmission Facilities” means electric facilities located in Delaware and owned by a

public utility that operate at voltages above 34,500 volts and that are used to transmit and deliver

electricity to Customers (including any Customers taking electric service under interruptible rate

schedules as of December 31, 1998) up through and including the point of physical connection

with electric facilities owned by the Customer.

“Transmission Services” means the delivery of electricity from supply sources through

Transmission Facilities.

2.0 Certification of Electric Suppliers

2.1 All Electric Suppliers must obtain an Electric Supplier Certificate from the

Commission to sell electric supply service to or arrange the purchase on behalf of Retail Electric

Customers prior to offering contracts to Customers or commencing service.

2.1.1 Certification Requirement.

All Electric Suppliers shall file with the Commission an original and ten

(10) copies of an Application for an Electric Supplier Certificate. Such application shall contain

all the information and exhibits hereinafter required and may contain such additional information

as the Applicant deems appropriate to demonstrate to the Commission that it possesses the

technical, financial, managerial and operational ability to adequately serve the public.

2.1.1.1 Authority to Do Business In Delaware.

Each Applicant shall provide documentation from the Delaware

Secretary of State and/or the Delaware Division of Revenue that it is legally authorized and

qualified to do business in the State of Delaware.

2.1.1.2 Resident Agent.

Pursuant to 26 Del. C. § 401, each Applicant shall file a

designation in writing of the name and post-office address of a person resident within the State

upon whom service of any notice, order or process may be made. This information must be

updated if changed.

2.1.1.3 Performance Bonds.

Each Applicant shall submit a copy of their performance bond or

guarantee that they have obtained as security to the Electric Distribution Company if required in

the Service Agreement between the Applicant and the Electric Distribution Company.

2.1.1.4 Compliance with Regional Requirements.

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Each Applicant, except for Brokers, must demonstrate that it has

the technical ability to secure generation or otherwise obtain and deliver electricity through

compliance with all applicable requirements of PJM. Brokers must submit relevant evidence of

technical fitness to conduct their proposed business. Any Broker arranging the purchase of

Electric Supply Service must procure electricity from an entity that complies with PJM’s

requirements and is a Certified Electric Supplier in the State.

2.1.1.5 Financial, Operational, Managerial and Technical Ability.

Each Applicant shall be required to present substantial evidence

supporting their financial, operational, managerial and technical ability to render service within

the State of Delaware. Such evidence shall include, but is not limited to:

2.1.1.5.1 Certified financial statements current within twelve (12)

months of the filing. Publicly traded Applicants must file their most recent annual report to

shareholders and SEC Form 10-K. Other indicia of financial capability may also be filed.

2.1.1.5.2 Brief description of the nature of business being

conducted, including types of customers to be served, services provided and geographic area in

which services are to be provided.

2.1.1.5.3 A list of states in which Applicant or any of its affiliated

interests is presently selling electric supply service to Retail Electric customers and a list of

states in which Applicant or any of its affiliated interests has pending applications to sell electric

supply service to Retail Electric customers.

2.1.1.5.4 A list of states in which Applicant or any of its affiliated

interests has been denied approval by a State Commission to sell electricity to Retail Electric

Customers or has had its authority revoked.

2.1.1.5.5 Relevant operational experience of each principal officer

responsible for Delaware operations.

2.1.1.5.6 A copy of any FERC approval as a Marketer or date and

docket number of the application to FERC.

2.1.1.5.7 If the Applicant requires deposits, advance payments,

prepayments, financial guarantees or the like from customers, then the Applicant must secure a

bond with corporate surety licensed to do business in Delaware guaranteeing the repayment of all

customer deposits and advances upon the termination of service. The amount of the bond will be

the greater of (i) 150 percent of the projected amount of deposits and advances for the next one

year period; or (ii) $50,000. If at any time the actual amount of the deposits and advances held

by the Applicant exceeds the amount projected, the amount of bond shall be increased to comply

with the requirement in the preceding sentence.

2.1.1.5.8 All new Applicants, except Brokers, shall demonstrate in

their applications that they possess a minimum of $100,000 of assets in excess of encumbrances

or a minimum of $100,000 in cash, cash equivalents, or financial instruments that are reasonably

Formatted: Justified

Formatted: Justified

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liquid and readily available to meet their costs of providing electricity to Customers or any

combination thereof.

2.1.1.5.9 Demonstration of cash or cash equivalents can be

satisfied by the following:

2.1.1.5.9.1 Cash or cash equivalents, including cashier’s

check, sight draft, performance bond proceeds, or traveler’s checks;

2.1.1.5.9.2 Certificate of deposit or other liquid deposit,

with a reputable bank or other financial institution;

2.1.1.5.9.3 Preferred stock proceeds or other corporate

shareholder equity, provided that use is restricted to maintenance of working capital for a period

of at least twelve (12) months beyond certification of the Applicant by the Commission;

2.1.1.5.9.4 Letter of credit, issued by a reputable bank or

other financial institution, irrevocable for a period of at least twelve (12) months beyond

certification of the Applicant by the Commission;

2.1.1.5.9.5 Line of credit, issued by a reputable bank or

other financial institution, irrevocable for a period of at least twelve (12) months beyond

certification of the Applicant by the Commission;

2.1.1.5.9.6 Loan, issued by a qualified subsidiary, affiliate

of Applicant, or a qualified corporation holding controlling interest in the Applicant, irrevocable

for a period of at least twelve (12) months beyond certification of the Applicant by the

Commission, and payable on an interest-only basis for the same period;

2.1.1.5.9.7 Guarantee, issued by a corporation, co-

partnership, or other person or association, irrevocable for a period of at least twelve (12) months

beyond certification of the Applicant by the Commission;

2.1.1.5.9.8 Guarantee, issued by a qualified subsidiary,

affiliate of Applicant, or a qualified corporation holding controlling interests in the Applicant,

irrevocable for a period of at least twelve (12) months beyond the certification of the Applicant

by the Commission; and,

2.1.1.5.9.9 Identifiable physical assets set forth in a balance

sheet or similar statement.

2.1.1.5.9.10 The Applicant shall disclose whether the entity

or any of its affiliated interests has filed for bankruptcy in the past 24 months.

2.1.1.5.11 The Commission or its Staff may consider any

other information submitted by the Applicant if it can show the financial, operational,

managerial, and technical abilities of an Applicant.

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2.1.1.6 Verification of Application. The Application must be verified by a

principal or officer of the Applicant.

2.1.1.7 Consent to the Jurisdiction. All Electric Suppliers shall consent to

the jurisdiction of the Delaware courts for acts or omissions arising from their activities in the

State.

2.1.1.8 Other Requirements:

2.1.1.8.1 Legal name as well as the name under which the

Applicant proposes to do business in Delaware;

2.1.1.8.2 State of incorporation, business address, and address of

the principal officer;

2.1.1.8.3 Name, title and telephone number of a regulatory contact

person;

2.1.1.8.4 A toll-free telephone number of customer service

department;

2.1.1.8.5 Description of the Applicant’s experience in the energy

market and a brief description of the services it plans to offer in Delaware and the type of

customers it plans to serve; and

2.1.1.8.6 Statement detailing any criminal activities of which the

Applicant or any of its affiliated interests has been charged or convicted, or which the principal

or corporate officers of the Applicant or any of its affiliated interests has been charged or

convicted.

2.1.1.9 Contracts.

At the time of the filing, the Applicant shall either provide its

Standard Contract for Residential and Small Commercial Customer or a link to it on the

Applicant’s website. Such contract is subject to review by the Commission Staff and if Staff

determines that such contract is not consistent with these Rules for Certification and Regulation

of Electric Suppliers (“Rules”), then Staff shall have the authority to require changes in order to

make consistent with these Rules or Electric Supplier faces revocation of its Electric Supplier

Certificate by the Commission after a hearing. Such contract shall be in clear and plain language

and include explicit terms and conditions which at a minimum contain the following:

2.1.1.9.1 A clear statement of the duration of the contract;

2.1.1.9.2 The price stated in cents per kWh or a clear and

unambiguous statement of the precise mechanism or formula by which the price will be

determined;

2.1.1.9.3 A complete list of any other fees, including early

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termination penalties, late fees, and interest charges, which can be imposed on the customer,

including but not limited to the magnitude of the fees and the specific conditions under which

such fees can be imposed;

2.1.1.9.4 A statement of the Electric Supplier’s termination rights,

which shall explain the specific conditions, under which the Electric Supplier may terminate

service. At a minimum, the Electric Supplier shall provide the Residential or Small Commercial

Customer with at least 30 days notice of termination of the contract and procedures to maintain

ongoing service;

2.1.1.9.5 The Electric Supplier’s local or toll-free telephone

number; address and web address, if applicable; and the Commission’s address and telephone

number;

2.1.1.9.6 A statement informing the Residential or Small

Commercial Customer that, because of relocation outside of their current EDC’s service

territory, they he/she may terminate his/her contract with his/her Electric Supplier with no

termination fee upon a 30-day notice in writing to the Electric Supplier.

2.2. Notice.

Each Applicant, except Brokers, shall publish notice of the filing of the application in

two (2) newspapers having general circulation throughout the State in a form to be prescribed by

the Commission.

2.3 Application Fee.

A non-refundable application fee of $750 shall be submitted with the application for

Certification.

2.4 Incomplete or Abandoned Applications.

Applications that do not include the necessary fees, supporting documentation or

information may be rejected. The Commission Staff will provide the Applicant with a list of

deficiencies and the Applicant will be given time to provide the necessary information to

complete its certification. However, an incomplete or abandoned application will be closed four

(4) months after the filing date, unless such time frame is extended by the Commission.

2.5 Waiver of Certification Requirements.

Upon the request of any Applicant, the Commission may, for good cause, waive any

of the requirements of these Rules that are not required by statute. The waiver may not be

inconsistent with the purpose of these Rules or Chapter X of Title 26 of Del. C.

3.0 Post-Certification Requirements

3.1 Term of ESC.

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ESCs are valid until revoked by the Commission or abandoned by the Electric Supplier

after the requisite notice to the Commission and to their customers.

3.2 Minimum Length of Electric Supply Service by Electric Supplier.

For each Retail Electric Customer class, each Electric Supplier must offer Electric Supply

Service to each of its Retail Electric Customers for a minimum period of one billing cycle.

3.3 Transfer or Abandonment of ESC.

The transfer of an ESC is prohibited without express Commission Order. No Electric

Supplier shall abandon Electric Supply Service within the State without 60 days written notice to

the Commission, the affected Electric Distribution Companies, and its Retail Electric Customers.

3.4 Contracts and Revised Contracts.

An Electric Supplier shall supply Electric Supply Service to a Residential or a Small

Commercial Customer only by a standard contract containing the provisions described in

Section 2.1.1.9, of these Rules The contract must be signed or verifiable by some other means of

authorization by the Residential or Small Commercial Customer. If an Electric Supplier offers a

Retail Electric Customer a check, prize, or other incentive which requires a signature, that

signature cannot be used as the contract signature. A Residential or Small Commercial

Customer has ten (10) calendar days from the day the EDC sends the confirmation letter to

rescind his/her selection. If the Electric Supplier makes substantive changes to its standard

contract for Electric Supply Service to Residential or Small Commercial Customers, the Electric

Supplier must notify the Commission Staff to allow for review and comment. If Staff determines

that such contract is not consistent with these Rules, Commission Staff shall have the authority at

any time to require changes to a standard contract for Residential or Small Commercial

Customers.

3.5 Price Terms.

Any price term shall not be inconsistent with pricing terms in a Residential or Small

Commercial Customer’s contract with their Electric Supplier. The Electric Supplier must provide

thirty (30) days written notice to its Residential or Small Commercial Customer(s) of any price

term changes.

3.6 Information that Must be Provided to a Customer by the Electric Supplier.

The Electric Supplier must provide the Retail Electric Customer with a copy of its

contract which includes the terms and conditions of service.

3.7 Customer Information.

An Electric Supplier may request a list from an Electric Distribution Company which

contains Retail Electric Customer’s name, service address and mailing address. A Retail Electric

Customer may elect to opt out of the list.

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3.8 Marketing and Advertising.

3.8.1 Pursuant to 26 Del. C. § 1012 (b) and as further defined in Section I of these

Rules, all Electric Suppliers shall not solicit Retail Electric Customers by means of telemarketing

where such telemarketing is prohibited by applicable laws and regulations.

3.8.2 An Electric Supplier or its marketing or advertising agent shall not make

misrepresentations or use deceptive practices in its direct solicitations, advertising or marketing

materials.

3.8.3 An Electric Supplier or its marketing or advertising agent must comply with

all federal, state or local laws applicable to advertising or marketing products or services.

3.9 Reports to be Provided to the Commission.

All Electric Suppliers shall provide such information concerning Delaware operations to

the Commission as the Commission may from time to time request, including any reporting

requirements contained herein. Information provided pursuant to this paragraph and designated

“proprietary” or “confidential” shall be held in accordance with paragraph 1 in Section X of

these Rules, and shall be afforded proprietary treatment subject to the provisions of the Rules,

Commission regulations, and Delaware Law.

3.10 Fees and Assessments.

Electric Suppliers must pay applicable fees and assessments under 26 Del. C. § 1012 (c)

(2). Electric Suppliers must also file any applicable reports required under 26 Del. C. § 115 (e).

The Electric Supplier, except Brokers, must also pay the Public Utilities Taxes pursuant to 30

Del. C. Chapter 55.

3.11 Record Retention.

All Electric Suppliers will retain customer account records for a period of two (2) years.

4.0 Billing and Metering

4.1 Billing Options.

4.1.1 Each Retail Electric Customer in Delmarva’s service territory has the right

to choose to receive separate bills from Delmarva Power & Light Company and from its Electric

Supplier (if the Electric Supplier provides a separate billing), or to receive a combined bill from

either Delmarva or its Electric Supplier (if the Electric Supplier provides a consolidated billing

option), for Electric Supply, Transmission, Distribution, Ancillary and other Services, consistent

with these Rules. If the Retail Electric Customer does not elect a billing option, Delmarva will

be responsible for billing the Retail Electric Customer for Electric Supply, Transmission,

Distribution, Ancillary and other Services, regardless of the Electric Supplier.

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4.1.2 In the Delaware Electric Cooperative’s service territory, the Cooperative

will bill each Retail Electric Customer for Electric Supply, Transmission, Distribution, Ancillary

and other Services, regardless of the Retail Electric Customer’s Electric Supplier.

4.2 Bill Contents.

The bill should be easy to understand and must contain the following information:

4.2.1 The name, address, and local or toll-free telephone number of the Electric

Supplier;

4.2.2 If different from the Electric Supplier, the name, address and toll-free

telephone number of the Electric Distribution Company;

4.2.3 The due date for payment;

4.2.4 If applicable an itemized list of each service or product billed for the current

billing period including charges for the Public Purpose Programs and a Competitive Transition

Charge (if applicable) or other agreed to charges;

4.2.5 Electricity consumption including whether the consumption was based on

actual recorded usage or estimated usage;

4.2.6 The actual cents per kWh (or the appropriate block charges or other pricing

mechanism) charged to the Retail Electric Customer for the Retail Electric Customer’s actual

usage (or estimated usage) of electricity for the current billing period;

4.2.7 The total charge for each service or product;

4.2.8 The amount of payment or other credit applied to Retail Electric Customer’s

outstanding balance during the billing period;

4.2.9 The amount still owed by the Retail Electric Customer from the previous

billing period;

4.2.10 Appropriate taxes and fees; and

4.2.11 If applicable, late fees as defined in the contract.

4.3 Metering.

4.3.1 During the Transition Period, Delmarva will continue to own all meters and

perform all meter reading functions. After the Transition Period, or earlier if requested by

Delmarva, the Commission can permit others to provide some or all of the metering functions on

a competitive basis.

4.3.2 The Delaware Electric Cooperative will continue to own and operate all

meters and perform meter reading functions.

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5.0 Customer Protection

5.1 Procedures to be followed by the Retail Electric Customer:

5.1.1 A Retail Electric Customer should first notify the Electric Supplier of their

complaint for resolution of their Electric Supply Services. In the event of an electricity-related

emergency, such as a power outage, or in the event of problems related to a Retail Electric

Customer’s EDC, the Retail Electric Customer should contact their EDC.

5.1.2 If the Retail Electric Customer and Electric Supplier are not able to come to

a resolution, the Retail Electric Customer may file a complaint with the Commission as

described in Rules 14 and 15 of the Rules of Practice and Procedure of the Commission.

5.2 Procedures to be Followed by the Electric Supplier:

5.2.1 If a Retail Electric Customer notifies the Electric Supplier that they have a

complaint, the Electric Supplier shall use good faith efforts to respond to and resolve the

complaint.

5.2.2 An Electric Supplier shall have customer service representatives to handle

its Retail Electric Customer’s inquiries and complaints.

5.2.3 If the Retail Electric Customer and Electric Supplier are not able to come to

a resolution, the Electric Supplier will inform the Retail Electric Customer that they may contact

the Commission.

5.2.4 The Electric Supplier shall prepare and maintain a report of these

complaints and keep these reports on file for a period of two (2) years. Upon request by the

Commission or its Staff or the Division of Public Advocate, an Electric Supplier shall furnish a

copy of such report to the Commission. The report shall contain the following information:

5.2.4.1 Type of complaint;

5.2.4.2 Date of complaint;

5.2.4.3 Resolution; and,

5.2.4.4 Date resolved.

5.3 Slamming.

An Electric Supplier must obtain verifiable authorization from the Retail Electric

Customer before switching Electric Supply Service. If a Retail Electric Customer believes that

their Electric Supply Service has been switched without authorization, the Retail Electric

Customer may request that the Electric Supplier provide evidence of the authorization and

verification. The Electric Supplier must submit this within five (5) business days if feasible, but

no longer than 15 business days of the request. If the Retail Electric Customer is not satisfied

with this response, the Retail Electric Customer may also file a complaint with the Commission

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pursuant to the Rules of Practice and Procedure of the Delaware Public Service Commission.

5.4 Cramming.

If the Commission determines that an Electric Supplier has billed unauthorized charges to

a Retail Electric Customer, that Electric Supplier may be subject to penalties that may be

imposed by the Commission through a hearing process. An Electric Supplier that has imposed

unauthorized charges on a Retail Electric Customer must void and/or refund all of those charges

to the Retail Electric Customer.

5.5 General Retail Electric Customer Protections.

An Electric Supplier, including Brokers, shall not engage in fraudulent or improper

activities, nor shall it disseminate any consumer information obtained pursuant to Section 3.7,

and may be subject to penalties as described in Section 10.0 of these Rules.

6.0 Green Power and Renewable Resources

6.1 For the purposes of this Section, a Green Power Product is defined as an Electric

Supply Service which is marketed or otherwise advertised as having a generation resource mix

consisting of Eligible Energy Resources above the current Compliance Year’s Cumulative

Minimum Percentage found in Commission Regulation No. 56.

6.2 Electric Suppliers offering a Green Power Product shall register with the PJM-EIS

GATS, or its successor. Electric Suppliers shall keep the account in good standing and shall be

subject to applicable PJM-EIS GATS rules and shall pay applicable PJM-EIS GATS fees.

6.3 Electric Suppliers offering a Green Power Product shall submit RECs equal to the

marketed or otherwise advertised generation resource mix consisting of Eligible Energy

Resources as part of their filing of the annual Retail Electricity Supplier’s Verification of

Compliance in the State of Delaware Renewable Energy Portfolio Standard Report.

6.4 When requested by a Retail Electric Customer or providing information regarding

Green Power through marketing and advertising material(s) or solicitation(s), an Electric

Supplier must label its fuel resource mix in a manner that accurately describes its electric

generating resources. The Electric Supplier must also inform the Retail Electric Customer, in

writing, that the Electric Supply Service the Retail Electric Customer receives will be used to

met the Electric Supplier’s RPS requirements.

6.5 An Electric Supplier shall not market, advertise, or solicit to Customers on the basis

that its product is environmentally beneficial unless it meets the minimum resource mix

requirement of paragraph 2 of this Section.

6.6 Electric Suppliers offering Green Power shall have to meet disclosure of fuel resource

mix stated in Section 7.0 of these Rules.

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7.0 Disclosure of Fuel Resource Mix

7.1 Each Electric Supplier, except Brokers, shall file a report with the Commission

disclosing the aggregate proportions of fuel resource mix for the electricity supplied to its

customers in Delaware for each quarter during the year. Such reports shall be filed by last date

of the month succeeding each quarter. The reports shall include, but are not limited to:

7.1.1 The total number of Retail Electric Customers by each Retail Electric

Customer class served during that quarter;

7.1.2 The total amount of electricity (kWh or MWh) supplied to each Retail

Electric Customer class; and,

7.1.3 The fuel resource mix by percentage for each resource.

7.2 Each Electric Supplier shall also disclose the information under paragraph 7.1.3 to its

Retail Electric Customers annually via bill inserts and each other quarter by providing

information on the Retail Electric Customer’s bill for that quarter directing the Retail Electric

Customer to obtain the information on the Electric Supplier’s website or by a telephone request.

Each Electric Supplier must maintain and update the information in paragraph 7.1.3 as required

by 26 Del. C. § 1012. Information reported under paragraph 7.1.3 may be utilized in any

consumer education program developed in accordance with 26 Del. C. § 1014 (c).

7.3 If an Electric Supplier, except Brokers, cannot provide the data in paragraph 1(c)

specifically for its Retail Electric Customers in Delaware, then the Commission will accept

comparable percentages for the load served in PJM.

8.0 Net Metering

8.1 General Provisions - – Net Metering can occur in three circumstances as follows:

Condition 1 – Individual Customer/Single Account/Single Premise where all Net

Metering activity occurs at a single customer premise for a single customer account;

Condition 2 – Individual Customer/Multiple Accounts/Single or Multiple Premises where

a single customer can aggregate Net Metering for crediting to multiple accounts and/or premises;

and

Condition 3 – Host Customer/Multiple Subscribers/Multiple Premises where a

Community Energy Facility, either behind the meter of a Subscriber or as a stand-alone facility,

provides Net Metering for multiple Subscribers and multiple premises.

Each Electric Supplier providing Electric Supply Service shall offer Customers the option

of Net Metering if a Customer generates electricity at the Customer’s premises, subject to all of

the following requirements:

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8.1.1 The Customer: owns and operates; leases and operates; or contracts with a third

party who owns and operates the electric generation facility with a capacity that:

8.1.1.1 Will not exceed 25 kW per DP&L meter for residential Customers;

8.1.1.2 Will not exceed 2 MW per DP&L meter for non residential Customers;

8.1.1.3 Will not exceed 100 kW per DP&L meter for farm customers, as those

customers are described in Title 3, section 902(3); provided, however, that the Delaware

Energy Office may grant exceptions to this limitation in accordance with Title 26, section

1014(d)(1)b.;;

8.1.1.4 Is intended primarily to offset allFor Conditions 2 or 3part, the sum of

the Customer's own electricity requirementselectric generation capacity will not exceed the

applicable limits per meter specified in Sections 8.1.1.1 through 8.1.1.3 above;

8.1.1.5 Uses as its primary source of fuel: solar, wind, hydro, a fuel cell

powered by renewable fuels, or gas from the anaerobic digestion of organic material;

8.1.1.6 Is interconnected and operated in parallel with an Electric Supplier’s

transmission and distribution facilities; and

8.1.1.7 Is not used by the Customer to supply electricity to property other than the

Customer’s premises.

8.1.1.7 Is designed to produce no more than 110% of the Host Customer’s expected

aggregate electrical consumption, calculated on the average of the two previous 12 month

periods of actual electrical usage at the time of installation of energy generating equipment and

subject to the capacity limits specified in Section 8.1.1.1 through Section 8.1.1.3 of this Rule.

For new building construction or in instances where less than two previous 12 month periods of

actual usage is available, electrical consumption will be estimated at 110% of the consumption of

units of similar size and characteristics at the time of installation of energy generating equipment

and subject to the capacity limits specified in Sections 8.1.1.1 through Section 8.1.1.3 of this

Rule.

8.2 Net Metering shall be accomplished through a single meter at the Electric Supplier’s

expense, that runs forward and backward in order to measure net energy flow during a billing

period.

8.2.1 An additional meter or meters to monitor the flow of electricity in each

direction may be installed with the consent of the Customer, at the expense of the Electric

Supplier, and the additional metering shall be used only to provide the information necessary to

accurately bill or credit the Customer pursuant to Sections 8.3 and/or 8.4 of this Rule, or to

collect system performance information on the eligible technology for research purposes.

8.2.2 Where a larger capacity meter is required to serve the Customer, or a larger

capacity meter is requested by the Customer, the Customer shall pay the Electric Supplier the

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difference between the larger capacity meter investment and the metering investment normally

provided under the Customer's service classification. If an additional meter or meters are

installed, the net energy metering calculation shall yield a result identical to that of a single

meter.

8.2.3 If the existing electrical meter of a Customer is incapable of measuring the

flow of electricity in two directions through no fault of the customer, the Electric Supplier shall

be responsible for all expenses involved in purchasing and installing such a meter.

8.3 If8.2.4 For Condition 3 where a stand-alone Community Energy Facility is

installed, the Electric Supplier shall install the metering necessary to provide the data to

accomplish the necessary billing and shall be responsible for all expenses involved in purchasing

and installing such a meter. The Electric Supplier shall assess the stand-alone Community

Energy Facility a customer charge equivalent to the load and energy output characteristics of the

generating facility which would be equivalent to the load and energy characteristics of a

similarly situated Retail Electric Customer in its Commission-approved tariff, i.e., an equivalent

retail tariff.

8.2.5 The equivalent retail tariff shall also be used to assess the stand-alone

Community Energy Facility non-volumetric charges to recover the otherwise applicable supply,

transmission, and distribution delivery costs.

8.3 For Net Metering Condition 1 and Condition 2 if, during any billing period, a

Customer-Generator Facility produces more energy than that consumed by the Customer, the or

aggregate total kWh of the Customer, the Electric Supplier will credit the Customer, and the

meters of the Customer located on the same distribution feeder as the Customer-Generator

Facility, in kWh’s, valued at an amount per kWh equal to the sum of volumetric energy (kWh)

components of the delivery service charges and supply service charges for residential Customers

and the sum of the volumetric energy (kWh) components of the delivery service charges and

supply service charges for non-residential Customers for any excess energy production of their

Customer-Generator Facility that exceeds the Customer’s on-site, or aggregate total,

consumption of kWh in the applicable billing period. For Customer meters not located on the

same distribution feeder as the Customer-Generator Facility, credit for excess energy will be

credited in kWh’s, valued at an amount per kWh equal to the volumetric energy (kWh)

component of the supply service charge. During any billing period prior to the end of the

Annualized Billing Period, the crediting of excess energy kWh will result in the reduction of cost

paid by the Customer for the equivalent volumetric energy kWh of delivery service charges, if

applicable, and supply service charges.

8.3.1 Excess kWh credits shall be credited to subsequent billing periods to offset

a Customer's consumption in those billing periods until all credits are used. During any

subsequent billing period prior to the end of the Annualized Billing period, the crediting of

excess energy kWh will result in the reduction of cost paid by the Customer for the equivalent

volumetric energy kWh of delivery service charges, if applicable, and supply service charges.

8.3.2 At the end of the Annualized Billing Period, a Customer may request a

payment from the Electric Supplier for any excess kWh credits. The payment for residential

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customer accounts shall be calculated by multiplying the excess kWh credits by the Customer’s

Supply Service Charges based on a weighted average of the first block of the summer (June

through September) and winter Supply Service Charges (October through May) in effect at the

end of the Customer’s Annualized Billing Period and the preceding 11 billing periods, excluding

non-volumetric charges, such as the transmission capacity charge and/or demand charges. The

payment for non-residential customer accounts shall be calculated by multiplying the excess

kWh credits by the Customer’s Supply Service Charges that would otherwise be applicable at the

end of the Customer’s Annualized Billing Period. If such payment would be less than $25.00,

the Electric Supplier may credit the Customer’s account through monthly billing.

8.3.3 Any excess kWh credits shall not reduce any fixed monthly Customer

charges imposed by the Electric Supplier.

8.3.4 The Customer shall retain ownership of all RECs associated with electric

energy produced from all eligible energy resources of the Customer-Generator Facility and

consumed by the Customer unless the customer has relinquished such ownership by contractual

agreement with a third party.

8.3.5 Electric Suppliers shall provide net-metered Customers electric service at

non-discriminatory rates that are identical, with respect to rate structure and monthly charges, to

the rates that a Customer who is not Net Metering would be charged. Electric Suppliers shall not

charge a Net Metering Customer any stand-by fees or similar charges.

8.3.6 If a Net Metering Customer terminates its service with the Electric

Distribution Company or changes Electric Supplier, the Electric Supplier terminating service

shall treat the end of service period as if it were the end of the Annualized Billing Period for any

excess kWh credits.

8.3.7 If the total generating capacity of all Customer-generation using net

metering systems served by an electric utility exceeds 5% of the capacity necessary to meet the

Electric Supplier's aggregated Customer monthly peak demand for a particular calendar year, the

Electric Supplier may elect not to provide Net Metering services to additional Customers.

8.48.3.8 Where applicable, the requirements established in Section 8.5

of these Rules shall apply to this Section 8.3.

8.4 (i) For Net Metering Condition 3 where the Community Energy Facility is located

behind the meter of a Subscriber that is also the Host Customer, the following will be subject to

the requirements established in Section 8.6 of this Rule:

1. During a billing period where the energy from the Community Energy Facility

exceeds the consumption of the Host Customer, the Subscribers participating in a

Community Energy Facility not located on the same distribution feeder as the

Community Energy Facility shall be credited in kilowatt-hours (kWh) valued at

an amount per kWh equal to supply service charges according to each account’s

rate schedule for any of the energy production in excess of the consumption of

the Host Customer of the Community Energy Facility. The Host Customer and

Subscribers located on the same distribution feeder as the Community Energy

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Facility shall be credited in kWh pursuant to Section 8.3 of this Rule. Any

excess energy after crediting Subscribers during a billing period shall be credited

in subsequent billing periods. During any billing period prior to the end of the

Annualized Billing Period, the crediting of excess energy kWh will result in the

reduction of cost paid by the Host Customer and Subscribers for the equivalent

volumetric energy kWh of delivery service charges, if applicable, and supply

service charges.

2. At the end of the Annualized Billing Period, a Host Customer may request a

payment from the Electric Supplier for any excess kWh credits. The payment

shall be calculated by multiplying the excess kWh credits by the supply service

charge of the Host Customer of the Community Energy Facility as provided

under Section 8.3 or 8.4.2 of this Rule. Such payment shall be made to the Host

Customer of the Community Energy Facility, and may be credited to the Host

Customer’s account through monthly billing if less than $25. Any excess kWh

credits shall not reduce any fixed monthly customer charges imposed by the

Electric Supplier.

3. The Subscribers participating in a Community Energy Facility shall retain

ownership of all RECs associated with electric energy produced from all eligible

energy resources of the Community Energy Facility unless the Subscribers

participating in the Community Energy Facility have relinquished such

ownership by contractual agreement with a third party.

(ii) For Net Metering Condition 3 where the Community Energy Facility is a stand-

alone facility, the following will be subject to the requirements established in Section 8.6 of this

Rule:

1. During a billing period where energy is produced from the Community Energy

Facility, each Subscriber participating in a Community Energy Facility not

located on the same distribution feeder as the Community Energy Facility shall be

credited in kilowatt-hours (kWh) valued at an amount per kWh equal to supply

service charges according to each account’s rate schedule for any of the energy

production of the Community Energy Facility. Subscribers located on the same

distribution feeder as the Community Energy Facility shall be credited in kWh

pursuant to Section 8.3 of this Rule. Any excess energy after crediting

Subscribers during a billing period shall be credited in subsequent billing periods.

During any billing period prior to the end of the Annualized Billing period, the

crediting of excess energy kWh will result in the reduction of cost paid by the

Subscribers for the equivalent volumetric energy kWh of delivery service charges,

if applicable, and supply service charges.

2. During any billing period prior to the end of the Annualized Billing period, the

crediting of excess energy kWh will result in the reduction of cost paid by the

Subscribers for the equivalent volumetric energy kWh of delivery service charges,

if applicable, and supply service charges.

3. At the end of the Annualized Billing Period, a Host Customer may request a

payment from the Electric Supplier for any excess kWh credits. The payment

shall be calculated by multiplying the excess kWh credits by the supply service

rate of the Host Customer of the Community Energy Facility pursuant to Section

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8.3 or Section 8.4.2 of this Rule, and may be credited to the Host Customer’s

account through monthly billing if less than $25. Any excess kWh credits shall

not reduce any fixed monthly customer charges imposed by the Electric Supplier.

The Subscribers participating in a Community Energy Facility shall retain

ownership of all RECs associated with electric energy produced from all eligible

energy resources of the Community Energy Facility unless the Subscribers

participating in the Community Energy Facility have relinquished such ownership

by contractual agreement with a third party.

8.4.1 A Community Energy Facility shall not exceed the sum total of the capacity

limits as defined under Section 8.1.1.1 through Section 8.1.1.3 of this Rule among the

Subscribers of a Community Energy Facility; and

8.4.2 As an alternative to Section 8.4 above, at the end of each monthly billing

period DP&L may elect to make payment to the Host Customer of the Community Energy

Facility for the value of the generated electricity as established by the Public Service

Commission. For purposes of Net Metering by DP&L, such value for generated electricity is

established as the otherwise applicable supply service charge of the Host Customer.

Additionally, for Subscribers located on the same distribution feeder as the Community Energy

Facility, at the end of each monthly billing period DP&L shall also include in the monthly

payment to the Host Customer the value for the volumetric kWh delivery service charges. The

payment for the value of the volumetric kWh delivery service charges shall be the same as

determined in Section 8.3 of this Rule.

8.5 Subject to the applicable Net Metering provisions of Section 8.0 of this Rule, in

instances where one customer has multiple meters under the same account or different accounts,

regardless of the physical location and rate class, the customer may aggregate meters for the

purpose of net metering regardless of which individual meter receives energy from a Customer-

Generator Facility, provided that:

8.5.1 DP&L shall only allow meter aggregation for customer accounts of which it

provides electric supply service; and

8.5.2 The Customer-Generator Facility is designed to produce no more than 110%

of the Customer’s aggregate electrical consumption of the individual meters or accounts that the

Customer is entitled to aggregate under this Section 8.5 calculated on the average of the two

previous 12 month periods of actual electrical usage. For new building construction or in

instances where less than two previous 12 month periods of actual usage is available, electrical

consumption will be estimated at 110% of the consumption of units of similar size and

characteristics at the time of installation of energy generating equipment; and

8.5.3 A Customer-Generator Facility shall not exceed the sum total of the capacity

limits among the participants of a Customer-Generator Facility as defined under Section 8.1.1.1

through Section 8.1.1.3 of this Rule; and

8.5.4 At least ninety days before a Customer commences construction of a

Customer-Generator Facility or a Customer is entitled to aggregate multiple meters, the customer

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shall file with DP&L the following information:

(i) a list of individual meters the Customer is entitled to aggregate, identified

by name, address, rate schedule, and account number, and ranked according

to the order which the Customer desires to apply credit for excess energy to

each individual meter; and

(ii) a description of the Customer-Generator Facility, including the facility’s

location, capacity, and fuel type or generating technology; and

(iii) a complete interconnection application to facilitate a transmission and

distribution analysis, including an evaluation of potential reliability, safety

and stability impacts and determination of whether infrastructure upgrades

are necessary and appropriate allocation of applicable interconnection costs.

8.5.5 The Customer may change its list of aggregated meters specified in Section

8.5.4(i) no more than once annually by providing ninety days’ written notice; and

8.5.6 Credit shall be applied first to the meter through which the Customer-

Generator Facility supplies electricity, then through the remaining meters for the Customer’s

accounts according to the rank order as specified in accordance with Section 8.5.4(i) above; and

8.5.7 Credit in kilowatt-hours (kWh) shall be valued according to Section 8.3 of

this Rule and each account’s rate schedule as specified in Section 8.5.4(i) above; and

8.5.8 DP&L may require that a Customer’s aggregated meters as specified in Section

8.5.4(i) above be read on the same billing cycle.

8.6 Subscribers are eligible to participate in a Community Energy Facility, provided:

8.6.1 A community includes customers sharing a unique set of interests; and

8.6.2 DP&L shall only allow meter aggregation for customer accounts of which it

provides electric supply service; and

8.6.3 A Community Energy Facility is designed to produce no more than 110% of

the community’s aggregate electrical consumption of its individual customers, calculated on the

average of the two previous 12 month periods of actual electrical usage. For new building

construction or in instances where less than two previous 12 month periods of actual usage is

available, electrical consumption will be estimated at 110% of the consumption of units of

similar size and characteristics at the time of installation of energy generating equipment; and

8.6.4 A Community Energy Facility shall not exceed the sum total of the capacity

limits among the participants of a Community Energy Facility as defined under Section 8.1.1.1

through Section 8.1.1.3 of this Rule; and

8.6.5 A Community Energy Facility may include technologies defined under

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8.6.6 Before Net Metering for a Community Energy Facility may be formed and

served by DP&L, the community proposing a Community Energy Facility shall file with the

Delaware Energy Office and DP&L the following information:

(i) a list of individual meters the community is entitled to aggregate

identified by name, address, rate schedule, and account number; and

(ii) a description of the Community Energy Facility, including the facility’s

physical location, the Host Customer’s physical location, capacity, and fuel

type or generating technology; and

(iii) the share of kWh credits to be attributed to each meter, which DP&L

shall true-up at the end of the annualized billing period.

8.6.7 A community proposing a Community Energy Facility may change its list of

aggregated meters as specified in Section 8.6.6(i) above no more than quarterly by providing

ninety days’ written notice to DP&L; and

8.6.8 If the community proposing a Community Energy Facility removes

individual customers from the list of aggregated meters as specified in Section 8.6.6(i) above,

then that community shall either replace the removed customers, reduce the generating capacity

of the Community Energy Facility to remain compliant with the provisions provided under

Sections 8.6.3 and 8.6.4 above, or negotiate with DP&L to establish a mutually acceptable

agreement for any excess kWh credit; and

8.6.9 DP&L may require that customers participating in a Community Energy

Facility have their meters read on the same billing cycle; and

8.6.10 Neither customers nor owners of community-owned energy generating

facilities shall be subject to regulation as either public utilities or an Electric Supplier.

8.7 Nothing in these Rules is intended in any way to limit eligibility for net energy

metering services based upon direct ownership, joint ownership, or third-party ownership or

financing agreement related to an electric generation facility, where net energy metering would

otherwise be available

8.8 For public utilities regulated by the Commission, net metering aggregation disputes

limited to the correct application of Commission-approved tariffs shall be resolved by the

Commission. All other disputes with an Electric Supplier, DEC, or municipal electric companies

shall be resolved by the appropriate governing body with jurisdiction over such disputes.

8.9 Any requirements necessary to permit interconnected operations between the

Customer-Generator Facility or Community Energy Facilities; and the Electric Supplier, and the

costs associated with such requirements, shall be dealt with in a manner consistent with a

standard tariff filed with the Commission by the Electric Supplier. An Electric Supplier's

interconnection rules shall be developed by using the Interstate Renewable Energy Council's

Model Interconnection Rules and best practices identified by the U.S. Department of Energy.

Electric Suppliers shall not require eligible net metering customers who meet all applicable

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safety and performance standards to install excessive controls, perform or pay for unnecessary

tests, or purchase excessive liability insurance.

8.510 Each Electric Supplier shall submit an annual net-metering report to the

Commission 90 days after the end of the calendar year. Such report shall include the following

information from the previous calendar year:

8.510.1 The total number of Customer-Generator Facilities; and Community-

owned energy generating facilities; and

8.510.2 The total estimated rated generating capacity of its net-metered

Customer-generators; Generator Facilities and Community-owned energy generating facilities;

and

8.510.3 The total estimated net kilowatt-hours received from Customer-

generatorsGenerator Facilities and Community-owned energy generating facilities; ; and

8.510.4 The total estimated amount of energy produced by

Customer-generators, Generator Facilities and Community-owned energy generating facilities;,

using a methodology approved by the Commission.

8.68.10.5 The annual net-metering report may be revised as necessary

to reflect changes in information available from net metered facilities upon consultation and

agreement between the Electric Supplier and the Staff of the Delaware Public Service

Commission.

8.11 The Commission shall periodically review the impact of net-metering rules in this

section and recommend changes or adjustments necessary for the economic health of utilities.

8.712 A retail electric customer having on its premises one or more grid Grid-Integrated

Electric Vehicles shall be credited in kilowatt-hours (kWh) for energy discharged to the grid

from the Grid-Integrated Electric Vehicle’s battery at the same kWh rate that customer pays to

charge the battery from the grid, as determined in Section 8.3 of this Rule. Excess kWh credits

shall be handled in the same manner as Net Metering as described in Section 8.3 of this Rule. To

qualify under this section of the Rule, the Grid-Integrated Electric Vehicle must meet the

requirements in Sections 8.1.1.1.,, 8.1.1.2, and 8.1.1.65 of this Rule. Connection and metering of

Grid-Integrated Electric Vehicles shall be subject to the rules and regulations found in Sections

8.3, 8.49, and 8.510 of this Rule.

8.813 The Commission may adopt tariffs for regulated electric utilities that are not

inconsistent with Section 8.712 of this Rule. Such tariffs may include rate and credit structures

that vary from those set forth in Section 8.712 of this Rule, as long as alternative rate and credit

structures are not inconsistent with the development of Grid-Integrated Electric Vehicles.

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9.0 Customers Returning to EDC or SOS Supplier for Electric Supply Service

The procedures for a Retail Electric Customer’s return to an EDC during the Transition

Period and to an EDC if it is the SOS Supplier after the Transition Period for Electric Supply

Service shall be in accordance with the Commission’s order for each EDC’s individual electric

restructuring plan.

10.0 Other General Rules

10.1 Proprietary Information.

Under Delaware’s Freedom of Information Act, 29 Del. C. ch. 100, all information filed

with the Commission is considered of public record unless it contains “trade secrets and

commercial or financial information obtained from a person which is of a privileged or

confidential nature.” 29 Del. C. §10002(d)(2). To qualify as a non-public record under this

exemption, materials received by the Commission must be clearly and conspicuously marked on

the title page and on every page containing the sensitive information as “proprietary” or

“confidential” or words of similar effect. The Commission shall presumptively deem all

information so designated to be exempt from public record status. However, upon receipt of a

request for access to information designated proprietary or confidential, the Commission may

review the appropriateness of such designation and may determine to release the information

requested. Prior to such release, the Commission shall provide the entity which submitted the

information with reasonable notice and an opportunity to show why the information should not

be released.

10.2 Failure to Comply with These Rules.

The failure by any Electric Supplier to comply with these requirements and the

requirements in other Sections of these Rules may result in penalties, including monetary

assessments, suspension or revocation of the Electric Supplier’s ESC, or other sanction as

determined by the Commission.

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E X H I B I T "B"

BEFORE THE PUBLIC SERVICE COMMISSION

OF THE STATE OF DELAWARE

FURTHER NOTICE OF PROPOSED RULE-MAKING TO AMEND

“NET ENERGY METERING” PROVISIONS IN THE PUBLIC SERVICE

COMMISSION’S ELECTRIC SUPPLIER RULES

TO: ALL RETAIL ELECTRIC SUPPLIERS IN DELAWARE, ALL DELAWARE

RETAIL ELECTRIC CUSTOMERS WHO GENERATE ELECTRICITY,

DELMARVA POWER & LIGHT CO., & OTHER INTERESTED PERSONS

Since 1999, electric utilities and electric suppliers have been

obligated to permit residential and smaller commercial customers to

use limited capacity generators to “net meter” their electric supply

consumption. 26 Del. C. §1014(d)-(k). The Public Service Commission

(“PSC”) has previously adopted rules to implement this “net electric

metering” regime as part of its Rules for Certification and Regulation

of Electric Suppliers, 26 Del. Admin. C. §3001-8.0 (“the

Regulations”).

In October, 2010, the PSC gave notice that it proposed to change

the net metering provisions in its Regulations in light of July, 2010

legislative amendments to the underlying statutory net metering

IN THE MATTER OF THE ADOPTION OF

RULES AND REGULATIONS TO IMPLEMENT

THE PROVISIONS OF 26 DEL. C. CH. 10

RELATING TO THE CREATION OF A

COMPETITIVE MARKET FOR RETAIL

ELECTRIC SUPPLY SERVICE (OPENED

APRIL 27, 1999; RE-OPENED JANUARY

7, 2003; RE-OPENED SEPTEMBER 22,

2009; RE-OPENED SEPTEMBER 7, 2010)

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PSC REGULATION DOCKET NO. 49

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regime. 14 DE Reg. 282 (Oct. 1, 2010). After receiving responses to

those earlier proposed rule changes, the PSC has now decided to issue

a Further Notice of proposed rulemaking and to propose further revised

changes to the net metering provisions in its Regulations. This

further Notice and the further refined proposed rule changes supersede

the rule revisions proposed under the earlier October, 2010 Notice.

As with the earlier proposed rule changes, the further proposed

rule revisions implement the 2010 legislative amendments (77 Del. Laws

ch. 453 (July 28, 2010)). They: (1) allow retail electric customers

to aggregate multiple individual metered accounts beyond the

account/meter serving the generation facility for purposes of

allocating net metering credits and (2) allow retail customers,

through aggregation of accounts or by investment, to obtain net

metering benefits via community-owned generating facilities. In

addition, the further revised proposed provisions allow Delmarva Power

& Light Company the opportunity to utilize an alternative value to

calculate the level of payment for excess “net metering” credits in

the context of community-owned generation facilities. Finally, the

further proposed revisions allow Delmarva Power & Light Company to

recover from stand-alone community-owned generation facilities a

customer charge and other applicable charges related to supply,

transmission, and delivery costs.

You can review the further revised proposed rule revisions in the

May, 2011 issue of the Delaware Register of Regulations (available

online at http://regulations.delaware.gov/services/register.shtml) or on the

PSC’s website at http://depsc.delaware.gov, under PSC Order No. 7946 (April

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19, 2011). You can also review and copy PSC Order No. 7946 and the

further proposed revisions at the PSC’s office at the address set

forth below ($.50 per page copy fee).

The PSC now solicits comments, suggestions, compilations of data,

briefs, or other written materials concerning the further proposed

revisions to the Regulations. If you wish to file any such materials,

you should submit an original and ten copies of such written documents

on or before June 1, 2011. You should file such materials with the

PSC at the following address:

Public Service Commission

861 Silver Lake Boulevard

Cannon Building, Suite 100

Dover, Delaware, 19904

Attn: Reg. Dckt. No. 49

If possible, you should accompany such written comments with an

electronic version of the submission. Such electronic copy may be

filed on a copy-capable CD-Rom disk or sent as an attachment to an

Internet e-mail addressed to john.farber@state.de.us. If you filed

comments or other materials in response to the October 1, 2010 notice,

those comments will be included in the record in this matter.

The PSC will hold a hearing to consider these further revisions

to the Regulations at its regularly scheduled meeting on Tuesday, June

7, 2011 at 1:00 p.m. at the address for the Commission listed above.

The Commission will make its decision to adopt, reject, or adopt with

modification, the proposed further revisions to the Regulations on the

basis the information presented of record in this docket. The

Commission is authorized to promulgate the proposed amendments under

26 Del. C. §§209 & 1014(d), (e), (k).

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If you have questions about this proceeding, you can contact the

PSC at 1-800-282-8574 (in Delaware only) or (302) 736-7500 (text

telephone available). You can also send inquiries by Internet e-mail

addressed to john.farber@state.de.us. If you are disabled and need

assistance to be able to participate, please contact the Commission to

make arrangements for such assistance.

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